Abstract
There is limited past literature on the impact of trade credit on firm value. This study uses a cross-regional sample of listed small and medium-sized enterprises in China, Eurozone and US between 2011 and 2021 to investigate regional differences of trade credit policies and their influence on firm valuation. Using accounts receivables, accounts payables andthe net trade credit position, our empirical study sheds light on the different valuation environments of stock markets in Asia, Europe and North America with the particular regard of trade credit through our definition of inclusive and egoistic firms. Moreover, the internal logical link between the stakeholder value creation behind trade credit and the holistic concept of firm value enriches contemporary debates around shareholder value maximization theory.
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